The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1887-12-16
PRESIDENTS MESSAGE.
The Surplus and the Tariff the Only
Questions Touched.
The Reports of Heads OF Executive De-
partments and Former Messages
Referred to for Information
ON Other Subjects.


NATIONAL FINANCES,
Which imperatively demands immediate and
careful consideration. The amount Of money
annually eNacted, through the operations Of
present laws, from the industries and neces- /
stiles OF the people, largely exceed the sum
ment. When we consider that the theory OF
Our institutions guarantees TO every citizen the
fun enjoyment OF all the fruits OF his industry
Fnd enterprise, with only such deduction
careful and economical maintenance
on the government which protects
him, IL IS plain that the eXaction Of more than
tbfs 'fs ti,defensfble eyfortion and a culpable
betrayal OF American fairness and justice. This
wrong inflicted upon those who bear tho burden
Of National tHxation, like other wrongs, multi
plies a brood Of evil consequences. The public
treasury, which should only exist as a conduit
conveying tbA peoples tribute TO its legitimate
objects OF expenditure, becomes q boarding
place for money needlessly withdrawn from
trade and tho peoples use, thus crippling our
National energies, suspeniolng our country s
ductive enterprise, threatening financial dis
turbance, AND inviting schemes OF public plum
This conSttion OF our treasury is not al
together new; and IL has more than once OF
late been submitted 70 the people reDresenta-
tiVes in Congress. who alone can apply q
remedy. Ard yet the situation still continues,
with aggravated incidents, more than ever
presaging financial CONFUSION and widespread
disaster Vt will not do TO neglect this situation
minent and apparent They exist none the
less certainly and await the unforeseen and
unexpected occasion when suddenly they viii
on the 86th day OF June. 1885, the excess OF
revenues over public expenditures, after com
Sinlring-Fund act was sI7, $50 735 "a; during the
venr ended June So 1886, such excess amounted
20 $50 405 54i.2o, and during the year ended June
30 1887, IL reached the sum OF S5ao6f oleo4; Inc
annual contributions to the sinking fund dur
ing the three years above specified, amounting
in the aggregate 20 al85Oos, 320.94, ana deducted
from the surplus as stated, were made by call
ing in for that purpose outstanding three per
cent. bonds OF the Government During the six
months prior to June Sd, 1887, the sur
plus revenue had grown so large by
repeated denominations, that it was
sum OF money needed by the people, would so
affect the business OF the country that the sum
OF EI9 s64 100 of such surplus was applied TO the
payment OF tho principal and interest OF the
three per cent bonds still outstanding and
which we're then payable at the option OF the
Government. The precarous condition OF
financial affairs among the people stin needing
1887, the remainder Of the three per cent bonds
then outstanding amounting with principal
and interest 10 the sum OF elSo115OO, were
called in ana applied to the sinking fnnd con-
Tribution for the current fiscal year. Notwtth-
Department representations ofdtstress in bust
ness circles not only continued. but increased,
and absolute peril seemed at hand. In these
circumstances the contribution 70 the sinking
fund for tho current fiscal year was at once
completed by the expenditure OF S27, 6S4, 283. IS
I'm the purchase OF Governments bonds not yet
due bearing four and four and q half per cent.
interest, the premium paid thereupon averag-
ing about twenty-four per cent for the former
and eight per cent. for the latter. In addition
80 this the interest acCruing during the current
year upon the outstanding bonded indebted
ness Of tho Government was 70 some extent
anticipated, and banks selected as repositories
OF public money were permitted to somewhat
increase their deposits.
Whale the expedieuts thus employed. to re-
lease 10 the people the money lying idle in the
treasury, served TO avert immediate danger,
our surphts revenues have continued to ac-
Cumulnte, the excess for the present year
amounting on the first day OF December 70 So;
258701.19, and estimated to reach the sum OF
Bi13,O0O,OOO on the 80th day OF June next, at
which data It is expected that this sum, added
20 prior aecumulatlonsc VIII swell the surplus
In the treasury TO el40. 100000.
There seems to be no assurance that, with
such withdrawal from use OF the peoples
circulating medium, our business community
may not in the near future be subjected
10 the same distress which was quite lately
PRODUCED from the same cause. And while the
functions OF our National Treasury should be
few and simple and while It's best condition
would be reached, believe, by its entire dis
connection with private business interests, vet
when, by perversion Of its purposes, il idly
holds money uselessly subtracted from the
channels OF trade, there seems to be reason Tor
the claim that some legitimate means should
emergency, without waste or extravaganza,
such money to its place among the people.
sucn an emergency arises liner, mere
executive power of relief. Heretofore the
redemption or three per cent pOnCs Wnlch WeFe
afforded means for the disbursement OF the
excess OF our revenue; but these bonds have
all been retired, ana there are no bonds out
standing, the payment OF which we have the
right to insist upon. The contribution to the
sinking fund, which furnishes the occasion fol
expenditure in the purchase Of bonds has beer
already made for the current year so that there
IS no outlet in that direction.
In the present state OF legislation the only
pretense OF any existing executive power TO re
store, at this time, any part OF our surplus rev
enucs 20 the people by its expenditure, con
slsts in the supposition that the Secretary OF
the Treasury may enter the market and pur.
chase the bonds OF the Government not yet due
at a rate OF premium TO be agreed upon.
The only provision Of law from which such
power could be derived is found in an appropri
alton bill passed a number Of years ago; and il
Is subject TO the suspicion that IL was intended
as temporary and limited In its application in
stead OF concerning continuing discretion an(
authority. No condition ought to exist which
would justify the grant OF power TO singh,
oncial, upon ms judgment or us necessity, q
withhold from or release to the business OF the
people, In an unusual manner, money held il
the treasury, and thus gnect, at his win
the financial situation CT the country; and i
&c is deemed wise TO lodge I'm the Secretary o
she Treasury the authority in the present junct
ure to purchase bonds, it should be plainl,
vested, ana provided, as far as possible, witt
such checks and limitations as Will define thi
oficial right and discretion, and at the sam
time relieve him OF undue responsibility.
In considering the question OF purchasin
bonds as a means Of restoring 20 circulation
the surplus money accommodating in the treas
ury, It should be borne in mind that premium
that there may be n large part OF these bond
held as investments which can not be pun
chased ut any price and that con
binations among holders who Of
willing 20 sell, may unreasonabl
enhance Govern
bonded debt might be refunded at q less rat
OF interest, and the difference between the 81
and new security paid in cash, thus finding us
for the surplus in the treasury. The succns
81 this plan, it is apparent must depend upo
ehe voliuon OK the holders of the preson
bonds; and 10 lis not entirely certain that tn
tnducement which must be offered them wOul
result IN more financial benefit TO the Govern
unent than the purchase OF bonds, while the la
ter proposition would reduce the principal {
the debt by actual payment instead OF extend
ing it.
The proposition to deposit tho money held b
che Government in banks throughout the cour
exceedingly Objectionable in principlA estal
fishing too close relationship between n
operations OF the Government Treasury ana tn
business of the country, and too extensive
Commingling Of their money, thus fostering q
unnatural reliance in private business upo
public funds. II this scheme should be adopte
80 should only be done as q temporary eXp'
olenl 70 meet an urgeht neeesslty, ASs lsla.t =,
and executive EFFORT should generally he IN "a
opposite direction, and should have tCndenc
20 divorce, as much and as fast q
can safely be done, the Treasury d.
partment from private enterprise. or course
Is not expected that unnecessary and extrav'
giant appropriations will be made for the pu
pose OF avoiding the accumulation Of an ezsses
OF revenue. Such expenditure, besides the ID
duty which it entails, stimulates a habit ,
reckless tmprovidence not IN the least cOnsis
mt with the mission of our people or the hig
and benehcent purpose OF our Government
have deemed IL my duty 70 thus bring to tn
knowledge OF my oountrymen, as well as 20 "a
with the responsibility OF legislative n
let the gravity Of our financial situation
The failure OF Congress heretofore TO proyio
against the dangers which 10 was quite evider
tho very nature Of the difficulty must nece
enrily produce, caused a condition OF hnancfg
distress and apprehension since your last AZ
lourment, which taxed TO the utmost all I'll
authority and eNpedients within executive cor
tfol; and these appear now to be exhauste,
u disaster results from the continued inactio
81 Congress, the responsibility must re.
where 10 belongs. Though the situation thu
far considered is fraught with danner whic
should be fully realized, and though it present
features of wrong TO the people rs Welt as per
70 the country. IL is but result growing out Of